The balance in Allowance for Doubtful Accounts will directly impact the end-of-period adjustment for bad debt expense when using the a. accrual method b. direct write-off method c. allowance method based on aging the receivables d. declining value method
Because in the aging method, you firstly calculate the aging of the items. And then, in the end of the period, you build the Allowance for Doubtful Accounts estimating the collections that are hard to get the amount of money.
